News & Insights

That’s another success for the books! Last week, manufacturers and their supporters nationwide celebrated MFG Day 2024, rolling out the red carpet for students, educators and jobseekers and showcasing modern manufacturing’s diverse career paths.

What’s going on: The Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate, was on the ground in Kansas for multiple plant tours and conversations.

Visiting Bradbury Group: On Thursday’s tour of the Bradbury Group’s plant in Moundridge, Kansas, about 400 students got a firsthand look at how roll-forming and coil-processing equipment is made.

• The company—whose CEO David Cox is an NAM board member—set up stations where attendees could learn about its many career tracks. In addition, local education and community training partners were on-site to showcase job-training initiatives.
• MI President and Executive Director Carolyn Lee participated in the events, touring Bradbury’s facility with approximately 70 students from Newton High School in Newton, Kansas.

Touring with Heroes: On Friday, Lee visited four McPherson, Kansas, manufacturing plants with participants from Heroes MAKE America, the MI initiative that makes connections between the military community and the manufacturing industry.

• The companies were piping-systems manufacturer Viega, insulation and commercial roofing maker Johns Manville, downstream equipment maker Plastics Extrusion Machinery LLC and sustainable construction materials manufacturer CertainTeed.
• At Viega on Friday, Lee spoke with local high school students viewing the facility at the same time as the HMA participants.

Focus on veterans: Friday’s events also featured a networking lunch for HMA participants, including transitioning service members, veterans and military spouses, with human resources representatives from McPherson manufacturers.

• The Bradbury Group—the parent company of four manufacturing businesses in addition to the Bradbury Company, which has participated in MFG Day for nine years—was represented at the lunch by one of its employees, a U.S. military veteran.

Made possible by: This year’s activities were made possibly by generous support from sponsors Union Pacific, Dominion Energy, Johnson & Johnson, Novonesis, UKG, the International Corrugated Packaging Foundation, Lutron Electronics Co. Inc, Winnebago Industries, Alfa Laval (US), Intertek Alchemy, the National Center for Next Generation Manufacturing and Seaway Bolt & Specials Corp.

Stay tuned: MFG Day events will continue across the U.S. throughout October and beyond. You can find the full list of registered events, and a handy map, here.

The last word: “MFG Day is the prime opportunity for manufacturers to demonstrate firsthand the vast career opportunities that exist in industry,” Lee said. “While students, parents and educators remain our primary focus, it’s also a great time to engage other career-seeking groups so that they, too, can see themselves in manufacturing.”

New orders for manufactured goods decreased 0.2% in August, after rising 4.9% in July. Excluding transportation, new orders declined 0.1%. Orders for durable goods were flat after rising 9.8% in July. Year to date, durable goods orders are down 1.3%. Nondurable goods fell 0.5% in August after rising 0.6% in July. Nonetheless, nondurable goods orders are up 1.8% year to date.

Although the transportation equipment sector overall recorded a slight decline, ships and boats had the biggest rise in orders of any industry in August, increasing 11.3%. After rising 18.3% in July, mining, oil field and gas field machinery orders fell 17.2% in August, followed by nondefense aircraft and parts (-7.5%). Nondefense aircraft and parts are down 31% year to date.

Factory shipments decreased 0.5% in August, after two months of growth. Shipments excluding transportation declined 0.2%, following a 0.3% increase in July. Shipments for durable goods were down 0.6% in August but are up 1.7% year to date. Meanwhile, nondurable goods shipments fell 0.5% in August but are up 1.8% year to date.

Unfilled orders rose 0.4% in August following a 0.2% increase in July. The unfilled orders-to-shipments ratio for durable goods increased to 6.87 from 6.76 in July. Inventories saw a slight gain of 0.1%, with the inventories-to-shipments ratio edging up to 1.46 from 1.45.

In September, Texas factory activity declined modestly, and most indicators of manufacturing fell for the month. The production index turned negative to -3.2, signaling a slight decrease in output from August. The new orders index slipped slightly to -5.2, and the capacity utilization index dropped further to -7.0. After rebounding in August, the shipments index fell into negative territory again, declining nearly eight points to -7.0.

Overall business conditions remained negative, with the general business activity index holding relatively steady at -9.0 and the company outlook index improving to -6.4. The outlook uncertainty index, which has been volatile lately, surged nearly 10 points to 17.3 after a significant decrease in the previous month.

Labor market indicators pointed to some employment growth but slightly shorter workweeks in September. The employment index moved up four points, while the hours worked index held steady at -2.5. About 20% of firms reported hiring, while 17% noted layoffs. Moderate upward pressure on prices and wages persisted. The wages and benefits index ticked down to 18.5, roughly aligned with historical averages. The raw materials prices index fell significantly to 18.2, while the finished goods prices index remained nearly unchanged at 8.4.

The outlook for future manufacturing activity remained optimistic. The future production index rose to 35.2, while the future general business activity index was generally unchanged at 11.4.

In September, U.S. manufacturing moved further into contraction. The S&P Global U.S. Manufacturing PMI dropped to 47.3 in September from 47.9 in August, remaining below the 50 threshold that indicates a contraction in the sector.

Output and new orders fell at sharper rates in September amid stronger weakness in demand and political uncertainty. Employment also decreased at the steepest pace since the start of 2010, excluding the significant drop during the pandemic.

New export orders also declined to a larger extent in September, as demand weakened notably in Europe. With new orders continuing to fall, manufacturers scaled back production for the second consecutive month. The resulting drop in backlogs of work was the largest since January. Meanwhile, post-production inventories accumulated for the third straight month. Respondents felt generally optimistic about future business, buoyed by hopes that the current demand slump would be temporary and improve after the presidential election.

Input costs softened but remained marked, and manufacturers increased their selling prices at the fastest pace since April. The pace of inflation eased slightly despite higher costs for raw materials and a rise in shipping rates. The contraction in purchasing activity accelerated amid lower output, reducing input stocks by the largest amount seen in 2024.

In September, the global manufacturing sector contracted for the third consecutive month, with overall operating conditions declining at the fastest rate since October 2023. The J.P. Morgan Global Manufacturing PMI dropped to 48.8 in September from 49.6 in August. Four of the five PMI components were at levels consistent with contraction, while only the suppliers’ delivery times index posted growth. New business orders, new export orders and employment all declined at a faster rate than in August.

The Eurozone saw the steepest decline in production, led by Germany. Output in the U.S. fell deeper into contraction, while China stagnated for the third straight month. Growth in India, Brazil, Spain and the U.K. remained the fastest. Among 32 nations, only 10 reported increased manufacturing production in September, led by India.

Data broken down by sector pointed to widespread malaise across the global industry. The intermediate and investment goods industries both experienced a contraction in production, and, although expanding, consumer goods growth remained tepid. All three subindustries saw declines in new orders and new export business.

In September, manufacturers’ decision-making was targeted at minimizing costs and combating underutilized capacity. Employment fell for the second consecutive month and to the greatest extent since December 2023, as continued decreases in backlogs of work suppressed the need for workers. The ongoing downturn dipped confidence to a 22-month low in September. On the other hand, inflationary pressures continued to ease, registering the mildest rates of increase in both input costs and selling prices since March.

In September, the U.S. manufacturing sector contracted for the sixth consecutive month, with the Manufacturing PMI matching the figure in August at 47.2%. New orders (46.1%), production (49.8%) and backlog of orders (44.1%) remained in contraction, but at a slower rate of decline. Inventories dropped significantly from a rate of growth (50.3%) to contraction (43.9%), and supplier deliveries are still slowing. Demand continued to be weak, with companies hesitant to invest due to federal monetary policy and election uncertainty.

The New Orders Index continued its contraction for the sixth consecutive month but is up 1.5 percentage points from August. This decline reflects ongoing uncertainty and concern about a lack of new order activity, with only two major sectors, computer and electronic products and food, beverage and tobacco products, reporting an increase in new orders. Their confidence in the future economic environment remains at its lowest levels since the COVID-19 pandemic recovery.

The Production Index remained in contraction in September but is up 5.0 percentage points from August. Of the six largest manufacturing sectors, three (computer and electronic products; food, beverage and tobacco products; and fabricated metal products) reported increased production.

The Employment Index fell 2.1 percentage points from August, among the lowest readings since July 2020. Companies continued to reduce headcounts through layoffs, attrition and hiring freezes, with only the food, beverage and tobacco products and machinery sectors expanding employment in September.

The Prices Index dropped 5.7 percentage points to 48.3%, indicating raw materials prices decreased in September after eight straight months of increases. Key commodity prices were less volatile, with petroleum-derived products showing weakness, aluminum indicating slowing growth, corrugate and ocean freight continuing growth and steel and steel products prices easing. Approximately 13% of companies reported paying higher prices, compared to 21% in August.

In August, the number of job openings rose to 8.0 million, an increase of 329,000 from the previous month but a decrease of 1,318,000 from the previous year. The job openings rate increased to 4.8%, up from 4.6% in July but down from 5.6% last year.

Job openings for manufacturing edged up slightly by 1,000 to 506,000 in August, with the increase of 12,000 job openings in nondurable goods making up for the decrease of 11,000 in durable goods. The manufacturing job openings rate stayed consistent at 3.8% from last month. The rate for durable goods manufacturing dropped from 4.0% to 3.9%, while it rose from 3.3% to 3.5% for nondurable goods.

The number of hires fell to 5.3 million from 5.4 million in August and are down 571,000 from the previous year. The hires rate dipped 0.1% to 3.3%. The hires rate for manufacturing declined 0.3% to 2.4%. The hires rate for durable and nondurable goods dropped to 2.2% and 2.7%, respectively.

Total separations, including quits, layoffs, discharges and other separations, fell 317,000 from July to right under 5.0 million and are down 612,000 from the previous year. The total separations rate declined to 3.1% and to 2.5% for manufacturing. The quit and layoff rates continue to remain lower for manufacturing than the total nonfarm sector.

Nonfarm payroll employment increased by 254,000 in September, blowing past the consensus estimate of 150,000 job gains. July and August job gains were also revised upward by 72,000 jobs. The 12-month average stands at 203,000 job gains per month. Manufacturing employment, however, declined by 7,000, largely influenced by a 6,500 decrease in motor vehicles and parts. In addition, August’s 24,000 manufacturing job loss was revised down to 27,000. The unemployment rate dipped 0.1 percentage point to 4.1%, while the labor force participation rate remained unchanged at 62.7%.

The employment-population ratio ticked up slightly to 60.2%, though it’s down 0.2 percentage points from a year ago. Employed persons who are part-time workers for economic reasons decreased by 206,000 to 4.6 million but are up from 4.1 million in September 2023. Native born employment is up over the month but down 825,000 over the year. Meanwhile, foreign born employment is up 1,201,000 over the year.

Average hourly earnings for all private nonfarm payroll employees rose 0.4%, or 13 cents, reaching $35.36. Over the past year, earnings have grown 4.0%. The average workweek for all employees edged down by 0.1 hour to 34.2 hours in September.

After days of disruption, and sustained advocacy by the NAM to keep manufacturers’ concerns at the forefront, the East Coast and Gulf Coast ports strike has ended, allowing for the resumption of normal operations crucial to manufacturers and the broader supply chain.

Background on the strike: The strike, which began earlier this week, had halted operations at key shipping terminals stretching from Boston to Houston, exacerbating the backlog at some of the busiest ports in the U.S. (Reuters , subscription). NAM data on the effects of a prolonged strike—including a hit to the U.S. GDP by as much as $5 billion a day—was cited widely by supporters of a compromise that would keep ports open as negotiations continued.

• The tentative agreement is for a wage hike of around 62% over six years, Reuters reports, with the current Master Contract extending until January to allow for ports to remain open as a final contract is negotiated.

Impacts on manufacturing: NAM members voiced deep concerns over shipment delays and the effects on production timelines. The strike impacted everything from raw materials to finished goods, underscoring the interconnectedness of the global supply chain and domestic manufacturing.

• “Manufacturers are encouraged that cooler heads have prevailed and the ports will reopen,” NAM President and CEO Jay Timmons said in a statement . “This decision avoids the need for government intervention and invoking the Taft-Hartley Act, and it is a victory for all parties involved—preserving jobs, safeguarding supply chains and preventing further economic disruptions.”

Resolution and next steps: The resolution came after intense negotiations facilitated by federal mediators, with both parties agreeing to resume operations while finalizing contract details. The NAM will monitor developments and remain engaged with policymakers to support stable labor conditions at key ports.

“Manufacturers depend on the stability of our ports to continue building, innovating, delivering products to American families and supporting communities across the country,” Timmons continued. “Another strike would jeopardize $2.1 billion in trade daily… We cannot afford that level of economic destruction.”

Washington, D.C. – Following news that the International Longshoremen’s Association and the United States Maritime Alliance have reached an agreement to extend the Master Contract until Jan. 15, 2025, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers are encouraged that cooler heads have prevailed and the ports will reopen. By resuming work and keeping our ports operational, they have shown a commitment to listening to the concerns of manufacturers and other industries that rely on the efficient movement of goods through these critical gateways. This decision avoids the need for government intervention and invoking the Taft-Hartley Act, and it is a victory for all parties involved—preserving jobs, safeguarding supply chains and preventing further economic disruptions.

“Manufacturers depend on the stability of our ports to continue building, innovating, delivering products to American families and supporting communities across the country. We commend the International Longshoremen’s Association and the U.S. Maritime Alliance for coming together in the spirit of collaboration and urge both parties to use this time to reach a fair and lasting agreement. Another strike would jeopardize $2.1 billion in trade daily and could reduce GDP by as much as $5 billion per day. We cannot afford that level of economic destruction.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.87 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org